DXY flows - NY extends the dollar move, USD/JPY making nervy push for 160

Having consolidated and held ground through Asia, NY taking on the baton to try and extend the dollar follow through on the narrative changing data and re-pricing, not only of the Fed, but also of the fundamental backdrop – it’s easy to forget that it is the 3 in a row 0.3% prints that are, as some Fed speakers call it, borderline disturbing.

And at the moment this isn’t seeing negative feedback to AI/tech/equities either – on the contrary the Nasdaq bounce extends with a strong further lift today back towards the recent trendline. While and so long as that proves the case, stretched or not, it is hard to see the mood shifting against the dollar's extension attempt. 

EUR/USD has the 1.11~ lows very close as the next key level while USD/JPY’s breakout looks like it will, nervously, extend into another 160 test near-term to see if that surfaces deeper supply.